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In the last couple months token sales have exploded, and it now seems there is a blockchain solution with a token at its core, for every startup idea ever conceived. The main purpose of a token is to act as a unit of exchange or utility within a platform or ecosystem. This means startups like ours, taking the token sale route, now, not only need to deliver on Product Market Fit right but also need to achieve Token Utility Fit.

What is Product Market Fit?

Product Market Fit is a term heavily used in the startup world. It relates to a startup that has built a product that people want, and use at scale.

What is Token Utility Fit (TUF)?

Token utility fit is when the token integrates sustainably within a product.

Therefore, token based startups need to:

a) build a product people want and use at scale, and;

b) integrate the token so it works seamlessly within the product, and indeed enhances the product’s functionality through Utility and/or Work.

The startup’s that get these both right, will win. These are the token sales worth backing. The reality is, many token sales currently running, don’t make a lot of sense when it comes to token utility.

Why the Skrilla Token will achieve Token Utility Fit

The Skrilla Token (SKR) will become the core unit of exchange for Skrilla wagering products. The primary function of SKR will be for entry into contests, to place bets and to receive winnings.

A Network

Tokens work best in products that are peer-to-peer networks. A token is a unit of exchange, and for it to obtain value, it needs to be continuously exchanged amongst a trusted network of people. This is the first box a Token Sale should tick, when considering the effectiveness of Token Utility.

Skrilla is a classic example of a peer-to-peer network. Members use the token to enter into daily fantasy contests and receive winnings. Contests are central nodes in the network, where members connect and compete against each other for prize pools. As more members join the platform and enter contests, the network grows, increasing the value of the network and the token as its core unit of exchange. This pattern is cyclical and highly repeatable where product market fit is achieved.

Removing Intermediaries

A big pain point for wagering products and their customers, is moving money in and out of a platform. To provide a traditional payment solution you need to work with credit card providers, payment gateways and banks in each specific region you want to operate. Most of these institutions won’t work with gaming products, and if they do they charge high fees for the privilege.

Using an ethereum based token will allow for the removal of many of these intermediaries, while also drastically reducing fraud and eliminating chargebacks. It allows for reduced friction in the processing of payments.

Global rather than regional contests are now feasible, providing greater liquidity, and the ability to socialise with players from all over the world. This is driven by a single unit of exchange and not applicable in traditional platforms with multi-currency and regions at their core.

Reduced fees and greater liquidity, means bigger prize pools and reduced rake, meaning players can play to win more, while engaging with a global audience.

Earning tokens, incentivising the network

In addition, using a token as a work token will allow us to distribute tokens, to members and affiliates, when they engage with our products or refer new members. This will enhance network effects and help grow the platform, which will be of benefit for all members.

GAMURS Group Products

Where feasible, further utility may be available within the broader GAMURS Group ecosystem which has 3.5 million monthly active members and is growing rapidly.

Early application within these networks could see the token used as a unit of exchange to:

purchase premium education content, on DoubleXP, the world’s first platform to offer a university style education in gaming and esports, allowing gamers to improve their skillset across multiple titles; and

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Skrilla is licensed and regulated by the Northern Territory Government in respect of Australian resident customers and is an active member of the Esports Integrity Coalition (ESIC), recognised as the acting body for esports wagering integrity globally.